If you are a fan of sports betting, then you certainly remember the water-shed May, 2018. The month when the most onerous piece of legislation barring our beloved hobby from taking off in full was dismantled by the Supreme Court of the United States. It was indeed a day to rejoice and one that we are likely to remember for a long, long time.
PASPA, Leave the Bettors Alone!
The repeal of this piece of legislation has enticed companies into taking bold steps into the US market, a move that was previously thought unreasonable from a business standpoint in the very least. However, markets have been opening up and the US is no exception.
What we can tell for sure is that the fresh deal between MGM Resorts International and GVC Holdings is definitely an exciting piece of news. In essence, the two companies will be pooling their efforts to build a joint-venture which will allow them to open a new online sports betting platform.
The scale of the project will also be impressive. With an investment of $200 million to begin with, the two companies will hope to set up their activities before the American football season. Not only that, but the pair is slated to enter 15 U.S. states as an absolute minimum.
This ambition could be a bit stretched, however, making it rather difficult to chart a steady course ahead. Conversely, the scale of the operations suggests that both companies remain committed to the new entity. In fact, the deal will have both parties remain active shareholders for a period of 25.
If either one of the party wants out, it can sell its shares to the other partner or simply find a private investor interested in holding assets in what promises to be the US’s largest online betting platform.
The Day of Online Sports Betting
Online sports betting is of course the most challenging aspect of all related gambling activities online to carry out in full. The opposition against sports betting was based mostly on the land-based venues, and the topic of online betting was by extension – a settled deal.
Even after the repeal of PASPA, lawmakers have not quite decided what to do with the online segment. Some companies have been experimenting with offering mobile betting, but users may only do so in specific venues, explicitly allocated for the purpose to begin with.
This is why the short notice period definitely takes many people by surprise, with the new entity born from the GVC and MGM partnership promising such quick results.
Both companies remain cognizant of the benefits the other party brings to the table, in the meanwhile. For instance, GVC’s technical savvy will allow MGM to monetize its brand in full over time.
MGM on the other hand is a known name in the United States already, so bolstering its offer can only do it the world of good. What better way to put its name out there than bring innovation to the whole industry, though?